KSS Information Memorandum 2021

The Self Storage Industry and Market Participants

The Australian Self Storage sector is dominated by 3 players – • National Storage REIT (ASX”NSR) • Abacus Property Group (ASX”ABP) • Kennards Self Storage (Pty Ltd) These 3 major players account for 41% of the Australian and 23% of New Zealand total supply. This highlights the self storage market is still extremely fragmented. National Storage NSR owns and manages over 200 self storage facilities in Australia and 25 in New Zealand. The REIT was listed in 2013 and continues to expand significantly through acquisitions. Abacus Property Group Abacus are a property group with their portfolio value split between Office (46%), Self Storage (43%) and Retail, Industrial, Residential (11%) making up the balance. Self Storage has become a key focus as they have grown through acquisitions to 92 centres across Australia and New Zealand. Abacus recently acquired the Storage King management platform which has 181 sites in Australia and New Zealand under their banner. All the Abacus sites are operated under the Storage King brand. Summary of Major Owners and Operators December 2020

Value of Owned Centres ($B)

Average Centre Size (SQM)

Operating Centre

Revenue All Centres ($M)

Operator

NLA (SQM)

Kennards

96

659,000

$1.9

$183.4

6,870

NSR

204

1,066,000

$2.7

$194.6

5,225

Abacus

92

442,000

$1.5

$114.0

4,806

• Information from Dec 2020 Half Year Results and Grossed up for a full year. Disrupters We are commonly asked about the risk of disruption by tech-enabled innovations. Indeed, the sector has seen a number of start-ups get going and endevour to disrupt the self storage sector. The disrupters have been in two models. One is a mobile or valet storage concept. This operates with a storage unit or small plastic container is delivered to the customers to fill and be taken away to storage. The second model is a peer-to-peer storage concept. This operates where a person has a spare room or garage rents their space to someone else using a platform. It is akin to Airbnb fro storage. Neither of these models have proven to take a noticeable share of customers from the classical self stoarge offer for a range of reasons. The article addressed likely customer concerns and friction points of this apparent industry threat in an artcile in 2017 and can be found here https://www.kss.com.au/news-and-updates/ challenges-confront-self-storage-disrupters-7309. Principally the trust, peace-of-mind and convenience of professional storage operators has proven to be favoured by cutsomers. To learn more specifically on the storage disrupters please read the article by Sam Kennard.

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